Economic Impacts on Consumers, Growers, and Processors Resulting from Mechanical Tomato Harvesting in California-Revisited

This article measures economic gains to consumers and processors of adopting mechanical tomato harvesters in California, recognizing the oligopsonistic behavior of processors in the raw tomato market It provuies a theorertical basts for using a kinked longrun supply curve to measure producer surpluses when the estimated supply curve mtersects the honzontal axis Consumer benefits are inflated approximately 25 percent when one misspecifies the raw tomato market as perfectly competitive Producer benefits from adopting mechanical harvesting are positive and exceed estimates tn previous studies